In this paper, we carried out the investigations of both etch characteristics and mechanisms for the $SnO_2$ thin films in $O_2/BCl_3/Ar$ plasma. The dry etching characteristics of the $SnO_2$ thin films was studied by varying the $O_2/BCl_3/Ar$ gas mixing ratio. We determined the optimized process conditions that were as follows: a RF power of 700 W, a DC-bias voltage of - 150 V, and a process pressure of 2 Pa. The maximum etch rate was 509.9 nm/min in $O_2/BCl_3/Ar$=(3:4:16 sccm) plasma. From XPS analysis, the etch mechanism of the $SnO_2$ thin films in the $O_2/BCl_3/Ar$ plasma can be identified as the ion-assisted chemical reaction while the role of ion bombardment includes the destruction of the metal-oxide bonds as well as the cleaning of the etched surface form the reaction products.